2016 Annual Report

IV. FDIC Budget and Spending

CORPORATE OPERATING BUDGET

The FDIC segregates its operating budget and expenses into two discrete components: ongoing operations and receivership funding. The receivership funding component represents expenses resulting from financial institution failures and is, therefore, largely driven by external forces, while the ongoing operations component accounts for all other operating expenses and tends to be more controllable and estimable. FDIC operating expenses totaled $1.9 billion in 2016, including $1.7 billion in ongoing operations and $260 million in receivership funding. This represented approximately 93 percent of the approved budget for ongoing operations and 65 percent of the approved budget for receivership funding for the year.1

The approved 2017 FDIC Operating Budget of approximately $2.2 billion is segregated into three components, consisting of $1.8 billion for ongoing operations, $300 million for receivership funding, and $37 million for the Office of Inspector General (OIG). The level of approved ongoing operations budget for 2017 is approximately $45 million (3 percent) higher than the 2016 ongoing operations budget excluding the OIG, while the approved receivership funding budget is $100 million (25 percent) lower than the 2016 receivership funding budget.

As in prior years, the 2017 budget was formulated primarily on the basis of an analysis of projected workload for each of the Corporation’s three major business lines and its program support functions. The most significant factor contributing to the decrease in the FDIC Operating Budget is the improving health of the industry and the resultant reduction in failure related workload. Although savings in this area are being realized, the 2017 receivership funding budget provides resources for contractor support as well as non-permanent staffing for DRR, the Legal Division, and other organizations should workload in these areas require an immediate response.

FDIC EXPENDITURES 2007–2016Dollars in Millions

1The numbers in this paragraph will not agree with the DIF and FRF financial statements due to differences in how items are classified.